BoE's King warns of currency wars

The Governor of the Bank of England said he fears active exchange rate management could potentially start a currency war among some of the world's leading economies.

Sir Mervyn King said many countries were trying to resolve their economic issues through higher exports rather than implementing monetary policy, adding further strain to the world economy, in a speech at the Economic Club, New York. The outgoing governor said the group of 20 leading economies no longer had the same common purpose they had when efforts were made to stave off the financial crisis in 2009. “There has been no agreement on the need for working together to achieve some element of rebalancing the world economy,” he said, according to Reuters. “My concern is that in 2013 ...